State cuts Medicaid payments
Emergency reductions in state Medicaid payments were ordered by the state administration in late June, cutting payments to health care providers 5 percent and freezing an inflation adjustment. The combined effect is a reduction of 7 percent to 8 percent, health providers say. The Alaska State Hospital and Nursing Home Association filed suit against the state arguing that proper procedures in changing regulations on payments were not followed.

SEARHC now has Sitka hospital
It’s official: Sitka Community Hospital, formerly owned by the local municipality, is now part of the Southeast Alaska Regional Health Consortium, or SEARHC. The transition has been under study for some time. All 135 employees of the city hospital were hired by SEARHC.

Long-term management for API
The state Department of Health and Social Services issued a request for proposals Aug. 5 for a review of management options for the state-run Alaska Psychiatric Institute. Wellpath Recovery Solutions is now managing the facility under a short-term contract.